China keeps position as world's largest manufacturing country

China has maintained its position as the world's largest manufacturing country for the 11th consecutive year with the industrial added value reaching 31.3 trillion yuan ($4.84 trillion), according to the Ministry of Industry and Information Technology on Monday.

China's manufacturing industry makes up nearly 30 percent of the global manufacturing industry. During the 13th Five-Year Plan period (2016-2020), the average growth rate of the added value of the high-tech manufacturing industry reached 10.4 percent, which was 4.9 percent higher than the average growth rate of the industrial added value, said Xiao Yaqing, minister of industry and information technology at a press conference.

The added value of the information transmission software and information technology service industry has also increased significantly, from about 1.8 trillion to 3.8 trillion, and the proportion of GDP increased from 2.5 to 3.7 percent, Xiao said.

NEV industry

Meanwhile, China will continue to boost new energy vehicle (NEV) development. Last year, the State Council issued a circular on the high-quality development of new energy vehicles from 2021 to 2035 in an effort to bolster the NEV industry. China's production and sales volume in new energy vehicles has ranked first in the world for six consecutive years.

However, the competition in the NEV market is fierce. There are still many problems in terms of technology, quality and consumer sentiment, which still need to be solved.

Xiao said the country will further improve standards and strengthen quality supervision in accordance with the needs of the market, especially user experience. Technology and support facilities are significant and NEV development will also be combined with building smart roads, communication networks, and more charging and parking facilities.

Chip industry

China's integrated circuit sales revenue is expected to reach 884.8 billion yuan in 2020 with an average growth rate of 20 percent, which is three times the global industry growth rate over the same period, Xiao said.

The country will continue to cut taxes for enterprises in this field, strengthen and upgrade the foundation of the chip industry, including materials, processes, and equipment.

Xiao cautioned that the development of the chip industry is facing both opportunities and challenges. It is necessary to strengthen cooperation on a global scale to jointly build the chip industry chain and make it sustainable with Xiao saying the government will focus on creating a market-oriented, law-based and internationalized business environment.